Wall Street gains on AI optimism, Palantir climbs 8.6%, PayPal sinks 17.3%, PepsiCo rises 1.7%

US stock indices gained on Tuesday, driven by artificial intelligence tailwinds following Palantir Technologies’ impressive fourth quarter results.

Reports from major tech corporations have highlighted an increasing investor focus on returns from extensive capital spending initiatives. Outlays for AI-centric hardware have surged, forcing firms to convert investments into tangible profits that justify elevated market prices.

At 9:33 a.m. ET the Dow Jones Industrial Average rose 0.24%, to 49,528.50, the S&P 500 gained 0.07%, to 6,981.15 and the Nasdaq Composite gained 0.12%, to 23,621.33.

Investors are evaluating reports that critical monthly employment data, due on Friday, might be postponed because of a partial federal shutdown. Tuesday’s JOLTS data was also delayed.

Key Stock Movers

Palantir Technologies shares climbed 8.6% on a near doubling of revenue tied to artificial intelligence products.

Teradyne stock surged 7.8% after the chip-testing equipment maker forecast a strong first-quarter outlook.

Pfizer shares slumped 4.4% on a quarterly loss and after disclosing it again doesn't plan to buy back stock in 2026.

PayPal stock plummeted 17.3% after the firm forecast 2026 profit below Wall Street estimates.

Walt Disney shares dipped 1.6% after the entertainment giant named parks division chief Josh D'Amaro as its new CEO.

Google parent Alphabet added 0.8% after hitting a record high in the previous session.

Amazon stock rose 0.6%.

PepsiCo shares rose 1.7%, with the firm announcing a price cut on core brands such as Lay's and Doritos.

Bullion Market

Gold and silver prices bounced back on Tuesday after a rout over the previous two sessions.

At 09:36 a.m. ET (1436 GMT), spot gold rose 5.1% to $4,901.75 per ounce. US gold futures for April delivery soared 5.9% to $4,926.40 per ounce.

Silver rallied 9.4% to $86.92 an ounce on Tuesday, after a record 27% one-day decline on Friday and falling a further 6% on Monday.

Among other metals, spot platinum climbed 6.3% to $2,255.55 per ounce, while palladium was up 5.1% at $1,806.85.

Crude Oil

Oil prices inched higher on Tuesday after falling more than 4% in the previous session as market participants assessed the possibility of a de-escalation in US-Iran tensions.

Brent crude futures rose 45 cents, or 0.68%, at $66.75 per barrel by 1413 GMT, while US West Texas Intermediate crude was at $62.70 a barrel, up 56 cents, or 0.9%.

On Monday, oil prices slumped more than 4% after US President Donald Trump said Iran was "seriously talking" with Washington, signalling a de-escalation of tensions.

Iran and the U.S. are expected to resume nuclear talks on Friday in Turkey, officials from both sides told Reuters on Monday.